Shop around. I've always dealt with State Farm and never paid much more than standard homeowner's insurance.

I am currently using Allstate - I have homeowners and car with them and the construction insurance was reasonable - and yes - "standard" builders risk insurance is ridiculous when you source it with a multi line agent (my experience)

Ask around at some local lenders - they know who writes strictly "builder's risk" policies. As for our new build, we just went ahead and got a regular HO policy on the new house (before we broke ground) and added an "Under Contruction" rider to it that added about $300 to the cost. The rider drops off after a year. This was with Travelers.

I have USAA insurance for the house and I just called and asked about a policy that would cover instruction and it wasn't a big thing. Yes it is more than the standard homeowners was, but they said don't forget to tell them when we have the CO so they can drop it down.

We're in SC, so we have little in common, but we used State Farm, which was the only company we could find that would insure our DIY build. It was about $500/year, the same as we pay on the finished house. Note that that's five hundred a year, not five thousand!

dbrad - holy cow! I have an agent assuring me that it "can't be done" - but you're proof that it can. Gosh, I hate this industry.

dbrad and Chance - if you don't mind sharing, what was the scope of your project? And what was the cost of the build?

also, @dbrad and @Chance, did you have a pre-existing policy with Travelers?

Yes, we have our current home and cars with them already, but this was still a separate HO policy for the new build. They don't care what it costs us to build - they do their own value calculation based on size/finishes/zip/etc. Basically what it would cost them to rebuild it.

Actually the insurance was kinda funny. Brand new house, pretty standard construction, 3600 square feet. Our build cost is $386,000. It will be less but that's the bid. County and bank put value at $450,000. Travelers cost to rebuild by their special calculator is $608,000. The lady told me they couldn't change this number. She did ask what our cost to build was though.

We already use Travelers for our current home and cars as well. The new house was a separate policy also.

Times they are a changing!

This 5,750 sf.build, next to Toronto, according to a broker we've dealt with before:

1. Property insurance was quoted with & without coverage for flood & earthquake
   Including flood & earthquake $16,078 for 18 months
   Excluding flood & earthquake $15,451 for 18 months
2. Liability Insurance was quote 3 different limits
   $1,000,000 general liability for $375

$2,000,000 general liability for $500

$5,000,000 general liability for $750

Am getting a second quote. Also going to reduce the coverage to exclude six-figure+ permit, consultant and architectural fees and excavation.

Query, if the house burns down, does our municipality require you undertake the whole permitting process again?? Nothing would surprise me.